OLDWICK, N.J.--(BUSINESS WIRE)--A five-year survey of the Caribbean Association of Insurance Regulators (CAIR) member countries found that reported premium for countries that participated in all five years increased 20.4% in the region to USD 4.5 billion in 2013 from USD 3.6 billion in 2009, according to a new A.M. Best special report.
Since the financial crisis of 2007-2009 there has been an increased focus on the global inter-connections in the financial markets and growing concerns over the potential for systemic risks that could cause significant market dislocation. As regulations and standards become more uniform across borders it becomes increasingly important that market participants, stakeholders and regulators have access to sound data. With this in mind, the new Best Special Report, titled, “A Snapshot of the Caribbean Insurance Market,” examined the results of the CAIR member countries survey, which collected key metrics on the condition of the insurance industry in the Caribbean that previously had not been readily available. The survey was sent to each country’s regulator and collected data from 2009- through 2013.
The CAIR member countries surveyed represent close to 7.4 million people and in 2013, more than USD 74 billion in annual gross domestic product. Of the 20 member countries, 18 countries participated in the 2013 data collection process. As the countries in the region are widely diverse with varying reporting requirements, accounting standards and regulatory requirements, the results vary from country to country on some levels.
In total, there was reported to be USD 11.7 billion of assets held by insurance companies in the CAIR member countries and reported cash and investments totaled USD 9.2 billion in 2013. Investment risk across the region remains relatively conservative, on aggregate, with over 67% of the investments held in bonds, cash and short-term investments. Notably, the Cayman Islands did not provide balance sheet data to the survey.
The region, though small, is diverse but there is an effort to harmonize local regulations and reporting standards with current and developing international standards. In an effort to enhance transparency, a number of jurisdictions are working to expand their reporting requirements.
Going forward, increased standardization across jurisdictions and improved data collection will allow for deeper analysis into the region. The region continues to experience strong premium growth rates and increased insurance penetration in off-shore financial centers and on-shore domestic markets. As the markets mature and grow, A.M. Best will continue to track, monitor and report on these changes.
To access a copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=241126.
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